India's central bank deals a surprise to the market by keeping its key lending rate unchanged at 8.00% citing persistent inflationary pressures in the economy. It also leaves the cash reserve ratio, or the percentage of deposits that banks must park with the RBI, unchanged at 4.75%. Eleven of the 16 economists polled by Dow Jones had predicted a 25 basis point rate cut, while two were expecting a 50 basis-point reduction. "While growth in 2011-12 has moderated significantly, headline inflation remains above levels of consistent with sustainable growth," it says in its mid-quarter review of monetary policy. The reverse repurchase rate - or its borrowing rate stands unchanged at 7.00% while the marginal borrowing facility stands steady at 9.00%, the RBI says. The pause follows a 50 basis point cut in April.
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